Bond Redemption and Sinking Funds
نویسندگان
چکیده
منابع مشابه
Taxable Bond Investing: Bond Funds or Individual Bonds?
Introduction This paper primarily examines the advantages of bond mutual funds over portfolios of directly held bonds for both institutional and individual investors. First, we review the structural advantages of bond mutual funds, which, compared with separately managed and laddered portfolios of individual bonds, generally provide greater diversification; more regular cash flows that promote ...
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We develop a model of hedge fund returns, which reflect the contractual relationships between a hedge fund, its investors and its prime brokers. These relationships are modelled as short option positions held by the hedge fund, wherein the “funding option” reflects the short option position with prime brokers and the “redemption option” reflects the short option position with the investors. Giv...
متن کاملA topic of current interest: Bonds or bond funds?
Executive summary. The current low-yield environment has led many bond investors to ask whether they should prepare for an eventual rebound in yields by purchasing individual bonds. The potential benefits of this strategy are often exaggerated. More important is that, for most bond investors, bond mutual funds and their exchange-traded fund (ETF) counterparts provide a number of advantages over...
متن کاملA topic of current interest: Bonds or bond funds?
■ Individual bonds can provide certain benefits over funds, and these advantages mostly have to do with a preference for control over security-specific decisions. The cost of these advantages can be thought of as a “control premium” that is reflected in generally higher (or additional) transaction costs, lower liquidity, more limited return opportunities, and higher bond portfolio risk. The con...
متن کاملThe Behavior of Investor Flows in Corporate Bond Mutual Funds
This paper comprehensively examines investor flows in corporate bond mutual funds. Despite extensive studies in equity funds, little is known about investor flows in bond funds which, with several distinct features, can offer new insights. Using a large sample of corporate bond funds, we first document that flows are sensitive to both fund performance and macro conditions. Then, we show that fl...
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ژورنال
عنوان ژورنال: The ANNALS of the American Academy of Political and Social Science
سال: 1907
ISSN: 0002-7162,1552-3349
DOI: 10.1177/000271620703000203